Delegates attend the opening plenary of Boao Forum for Asia (BFA) Annual Conference 2009 in Boao, a scenic town in south China's Hainan Province, on April 18, 2009. The BFA Annual Conference 2009 opened in Sanya on Saturday with the theme of "Asia: Managing Beyond Crisis". [Xinhua photo]

China's stimulus package paying off

Wen introduced the steps China has taken to cope with the severe impact of the global financial crisis, saying the country's package plan is already "paying off", and positive changes have taken place in the economy.

China's gross domestic production (GDP) rose 6.1 percent in the first quarter of this year, the slowest pace in a decade.

However, the situation is "better than expected", the premier said, citing pick-ups in investment, consumption and industrial output, as well as ample liquidity in the banking system.

He said domestic demand is boosted in a comprehensive way, industrial output has gradually stabilized, and agricultural production is on the whole stable. Economic restructuring has made encouraging progress, and urban employment has risen as 2.68 million jobs were created in the urban areas in the first quarter.

He said the stimulus policies were primarily aimed at boosting domestic demand, and at the same time made full use of external demand, to make both of them drive economic growth.

"This will lead to the transformation towards a more balanced growth pattern of the Chinese economy," he said.

Wen said the stimulus policy would give a big push to the shift from extensive economic growth driven by high consumption of material resources to intensive growth driven by scientific and technological advancement, improved quality of the workforce and institutional innovation.

"China" is a big word, said James E. Glassman, managing director and senior economist with J. P. Morgan Chase.& Co. "It symbolizes an important story in the economic universe. It underscores how much is at stake not only for the United States and China, but the global economy, and how important it is to address the global financial crisis," he said.

"We should not, however, lose sight of the fact that the international financial crisis is still spreading, the basic trend of world economic recession is not reversed, problems in the financial system remain unsolved and the worsening of the real economy has been more serious than expected," Premier Wen warned.

The global economic recovery may be a long and tortuous process, he said.